The World Trade Organization (WTO) meeting was held in Geneva. At this conference, America and European countries opposed the agricultural subsidy given to Indian farmers. The annual subsidy of Rs 6,000 that PM Narendra Modi gives to farmers is also included in the agricultural subsidy. In such a situation, America and Europe have given full force to stop it. India has also refused to bow down to powerful countries on this issue.
WTO meeting on 3 major issues
The WTO meeting was held in Geneva from 12 June to 15 June 2022. Ministers from 47 countries of the G-33 group of WTO comprising 164 member countries participated in this event. Union Minister Piyush Goyal joined from India's side. In the WTO meeting to be held this year, preparations have been made to bring a proposal on these 3 important issues.
1. To eliminate agricultural subsidies.
2. To make international laws on fishing.
3. To bring new rules on Kovid Vaccine Patent.
America, Europe, and other powerful countries were in support of the resolution to be brought on all these three issues, while India strongly opposed the powerful countries on all these three proposals. India has refused to abolish agricultural subsidies despite pressure from powerful countries. Now India has got the support of 80 countries of WTO in this matter.
Agricultural Subsidies: America and Europe want India to end all types of agricultural subsidies given to farmers here.
This includes all these agricultural subsidies.
6 thousand rupees given annually under PM Kisan Samman Nidhi
The subsidy is given on urea, fertilizer, and electricity
The subsidy is given as MSP on food grains
Powerful countries like America believe that due to subsidies, Indian farmers produce a lot of rice and wheat. Because of this, India's grain is available in the world market at a low price.
Due to the high price of grain in America and European countries, its sale is less in developing countries. This is the reason why powerful countries want to stop India from giving agricultural subsidies to dominate the world grain market. India is not ready to accept it.
Fish farming: Powerful countries believe that developing countries like India produce more fish based on government help. Due to this, other countries have to face competition in the global market. This is the reason why countries like America want to stop subsidizing fishermen. Also want to make international law on fishing.
India has lodged a strong protest against this. India's logic behind this is that if this happens, then there will be a crisis in the livelihood of 40 lakh fishermen in 10 states of India.
The farmers of Punjab receiving the highest subsidy are the most prosperous
How much government help or subsidy is needed by the farmers of India, we can understand with the example of Punjab. According to government reports, the annual income of an average Indian farmer's family is Rs 77,124. Whereas the average annual income of a farmer family in Punjab is Rs 2,16,708. The strong economic condition of Punjab's farmers is a testament to how helpful government support can be.
This is the reason why the Government of India gives subsidies to the farmers of the country from seeds to water and electricity. Because of the increasing cost of farming, the Minimum Support Price (MSP), and subsidy on electricity, fertilizers are seen as one way to increase the income of the farmers.
Even though America and other powerful countries in WTO refuse to subsidize farmers of developing countries, America itself is far ahead of other countries in subsidizing the prosperous farmers of its country. That too, when the annual income of American farmers is 52 times more than that of Indian farmers.
India got the support of 80 countries along with China in WTO
Even though the armies of India and China are face to face on the LAC over the border dispute, both India and China have come together in the matter of the proposal presented against the subsidy in the WTO. In this matter, India is getting the support of 80 member countries of WTO.
This is not the first time that two big countries of Asia, China, and India have come together against the rules of WTO. Earlier on July 17, 2017, both the countries together opposed the western countries in the matter of subsidies to farmers. China also gives government assistance, ie subsidy, of more than Rs 17 lakh annually to its farmers.
US lawmakers threaten to sue India for subsidies
Ahead of the WTO meeting starting in Geneva, 28 US lawmakers wrote to President Joe Biden, demanding a lawsuit against India at the WTO. These MPs had accused the Government of India of giving more subsidies to the farmers than the prescribed rule.
US lawmakers wrote in their letter that according to the rules set by the WTO, the Indian government is giving more than 10% subsidy on the production value of food grains. Due to this, India's food grains are easily available in the global market at low prices. This is not in the interest of American farmers.
This is the reason why US lawmakers have asked President Joe Biden to take strong action against India.
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